Consumer boost on the cards
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Cheaper books and coffee, medicines available at supermarkets and longer shopping hours could be on the cards if the federal government accepts the findings of a new report.
It’s no secret that Australians consumers pay higher prices than many people overseas for items such as new release TV shows, games, and clothing, through a tangle of red tape and import policy.
Professor Ian Harper, who is undertaking the biggest review of competition policy in two decades, released a draft yesterday calling for changes to laws and regulations in a bid to fix the issue.
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Consumer group Choice said Professor Harper’s report had many ideas to help consumers beat this “Australia tax”.
They included exposing industries to greater competition from overseas, such as reforming intellectual property laws, removing restrictions on parallel importing and giving Australians the confidence to get around barriers, like online geoblocking, that keep local prices high, Choice chief executive Alan Kirkland said.
One of the more controversial calls is to end restrictions on pharmacies.
The community pharmacy agreement, which ensures all pharmacies can only be run by qualified pharmacists and places restrictions where they operate, is set to expire in July 2015.
The Harper report said the long-standing deal limited consumer choice and the ability of suppliers to meet consumer demand.
The government could find other ways to ensure pharmacies met safety, access and standard of care requirements.
The report said trading hour restrictions should be abolished as they are anti-competitive.
However, Christmas Day, Good Friday and Anzac Day mornings should remain exceptions.
Prof Harper also recommended that taxi regulation be overhauled.
Regulations limiting the number of taxi licences and preventing other services from competing with taxis had raised costs for consumers and hindered new transport services from emerging, he said.
“States and territories should remove regulations that restrict competition … including from services that compete with taxis, except where it would not be in the public interest,” the report said.
The report also proposed that the states cede some of their regulatory powers to a new national body called the Access and Pricing Regulator and that decisions on all mergers – formal and informal – be made by the Australian Competition and Consumer Commission.
The final report will go to the government in March 2015.